Navy Hedges Bets on NGEN Contract

The sea service seeks to extend NMCI’s lifetime just in case its replacement is delayed.

The Department of the Navy is looking to lengthen the Navy-Marine Corps Intranet (NMCI) continuity of services contract if its new Next Generation Enterprise Network (NGEN) program is delayed beyond its expected April 30, 2014 switchover date. But, even if NGEN proceeds according to schedule, the NMCI contract ceiling still will be exceeded in September 2013, requiring additional funds to keep the legacy network running.

The Navy will need as much as $1.2 billion on top of the existing $4.9 billion NMCI continuity of services contract ceiling to keep the network operating. In addition to that increased funding, the Navy is issuing a notice of intent to modify the NMCI continuity contract with options for extending NMCI services to September 30, 2014. These options would be exercised only if the transition to NGEN is delayed.

Navy officials emphasize that no need currently exists for an NMCI extension, and no decision has been made to extend the contract beyond April 2014. The new options are designed to provide flexibility for any changes in NGEN acquisition and transition.

The Navy expects to award the multibillion dollar NGEN contract in May of this year.